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MEMORIAL SERVICE LIFE INSURANCE COMPANY
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GENERAL AGENT CONTRACT
THIS AGREEMENT made by and between
National Prearrange Services Agency, Inc.
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Name
312 Providence Towers East ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇.
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City State Zip
hereinafter called the "General Agent", and Memorial Service Life Insurance
Company, hereinafter called the "Company".
In CONSIDERATION OF THE MUTUAL AGREEMENTS herein contained, it is agreed by and
between the General Agent and the Company as follows:
1. Your appointment and Relationship with Us: We hereby appoint you a
General Agent of the Memorial Service Life Insurance Company. You may
solicit directly, or through your authorized agents, applications for
Life Insurance and other such policies of Insurance subsequently agreed
upon by you and us. You hereby agree to forward all such applications to
us for approval or rejection, along with all premiums collected from each
applicant.
It is understood that as a General Agent and along with your employees
and agents, you are an independent contractor. Nothing contained in this
contract shall be construed to create an employer-employee relationship
between you and us. We will establish service for eligibility of
applicants for insurance, and you agree that you and your agents will
observe our rules in good faith. We may also establish, and you agree to
observe, rules for general transactions of business. We will give you
written notice of any changes in our rules.
2. Your Commission Compensation: You agree that you are responsible for
paying all expenses which you incur in the performance of this contract.
As full compensation for your services, we will pay your Commissions
as defined herein.
Sales Commission Marketing Allowance Activity Bonus
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Percent Issue Percent Total Monthly % of Total
Policy Type Of Face Age Of Face Amount Mo. Amnt.
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Single Pay 8% 60 & Under 10% $100,000 or More 5%
Limited Pay 8% 61 - 80 6% $99,999 to $50,000 4%
Graded Benefit 7% 81 & Older 2% $49,999 to $30,000 3%
Annuity 7% $29,999 to $20,000 2%
$19,999 to $10,000 1%
Provision is made for contingent renewal comissions payable to the
General Agent. The percentage, if any, will be determined by us prior
to January 1 of each year. It will be payable for up to five (5) years
on the anniversary of each in-force policy. The maximum renewal
commission will be two (2) percent. The amount will be based on the
initial policy face amount.
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3. Statement of Account: At the end of each month we will furnish you a
detailed statement of Account for you and for any of your agents.
Upon receipt of such statements, you should immediately examine them,
and if you are not satisfied as to its correctness, you should notify
us immediately. Failure to do so within the next thirty (30) days
shall be deemed an admission by you of the accuracy of such
statement.
4. Payment of Commission: Total Commissions including an estimated
Activity Bonus (excluding renewal commissions) will be paid in full
when policies are issued by the Company. The initial activity bonus
rate will be based on activity of the prior month and will be adjusted
at month end for actual current month activity.
5. Territory: The territory within which General Agent shall have the
right to operate under the terms of this Agreement shall be agreed to
by the Company. The Company may directly appoint any other agent in any
portion of the territory assigned to General Agent, and General Agent
shall have no claim for commissions or other remuneration for or on
account of insurance effected by such other agent, unless such other
remuneration is assigned to General Agent. The Company may, at any
time, at its option and without liability to Genral Agent, withdraw
from doing business in the state or district in which the assigned
territory lies and may withdraw, change or alter any policy issued
by it without notice to General Agent. General Agent shall not solicit
applications in any territory in which either General Agent or the
Company is not properly authorized and licensed to act.
6. Recruiting and Contracting of Agents: Within the assigned territory,
you are authorized to recruit and recommend to us soliciting agents,
herein called "agents". Agents will not be allowed to solicit insurance
for us unless they are duly licensed in their state of operation, and
not until the agent is appointed by us with the State Insurance
Department. You are responsible to us for the fidelity and honesty of
your agents and all funds collected by or entrusted to them. You hereby
agree to hold us harmless from all expenses, costs, causes, or actions
and damages resulting from knowingly and intentionally committing
unauthorized acts of you, your agents, or employees, You agree to
furnish us copies of all contracts between you and your agents
appointed by us.
7. Our Direct Appointment of your Agent: We will not directly appoint
any of your agents until ninety (90) days after the date of a written
termination notice by you or after the date of written notice of
resignation by the agent. However, upon termination of your contract,
we may directly appoint any of your agents 30 days after the written
notice of termination by us or written notice of resignation by you.
8. Limitation of Authority: Your authority shall not exceed that expressly
granted herein and no forbearance or neglect on your part or ours shall
be a waiver of any of the terms of this contract or imply the existence
of authority not expressly granted herein. You are not authorized to make
any contract or incur any debt in our name, or to make; modify, or amend
any application for insurance; nor to waive any of our rights or
privileges under our policies or applications.
9. Indebtedness: Any money you owe us shall be a first lien on any
commissions due and shall be payable in ▇▇▇▇▇▇, ▇▇▇▇▇▇ County, Texas.
We may at any time offset against commissions accrued or to accrue to
you and your agents any debt under this contract. However, in the event
of termination, the commissions on accounts with credit balances would
be applied to pay off the debit balances.
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10. Refunds: It is your responsibility to make prompt refund of all money
collected on any application on which we decline to issue a policy, and
on any application on which a policy is issued by us, but not accepted by
the applicant.
11. Discontinuance of Policy Plans: We may discontinue any policy plan.
Upon not less than thirty (30) days written notice, we may change the
commission provided herein, but any such change shall not affect
commissions on policies issued resulting from applications secured by
you and received at our home office prior to the date such change
becomes effective.
12. Assignments: This contract is not transferable and is assignable only
upon our prior written consent, said consent will not be unreasonably
withheld and will be acted upon in a timely fashion.
13. Conduct: Should you, at any time, knowingly and intentionally, wrongfully
withhold funds belonging to an applicant for insurance, or a policyholder
of the Company, or should you knowingly and intentionally, induce any
policyholder to lapse, relinquish, or surrender a policy with the
Company, or should you knowingly and intentionally fail to comply with
the state insurance laws and regulations under which you are licensed,
then no commissions shall thereafter be payable under this contract.
Any such action is defined as a breach of contract.
Should any of your agents knowingly commit any of the above defined
breach of conduct, at your direction, then no commission shall thereafter
be payable for those agents.
Should a number of your agents commit any of the above defined breach
of contract, at your direction, or your agency knowingly and intentionally
encourage, participate or condone such conduct, then no commissions shall
thereafter be payable under this contract.
14. Supplies and Advertising: All printed matter or other supplies furnished
to you are our property and shall be returned to us upon termination of
this contract. No circulars, advertisements or other matter reflecting
the Company name shall be published, printed, distributed, or used in any
other way by you or your agents, until such material shall first have
been approved in writing by us.
15. Sole Agreement: This contract shall take effect on the date shown on this
page upon signature of both parties. It includes all agreements between
the parties and supersedes and previous contracts.
16. Termination of Contract: This contract may be terminated by either
party by giving a thirty (30) day written notice.
IN WITNESS WHEREOF, THIS CONTRACT HAS BEEN SIGNED BY THE PARTIES HERETO.
DATED AND EFFECTIVE AT AUSTIN, TEXAS THIS 12th DAY OF May , 19 92 .
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Memorial Service Life Insurance Company
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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General Agent's Signature Title: President
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License Number or Corporate I.D. Number
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ADDENDUM
This Addendum is provided for the purpose of revising the Commission
Compensation found in the General Agent Contract between Memorial Service
Life Insurance Company ("Company") and National Prearranged Services Agency,
Inc. ("General Agent"). The effective date of this Addendum shall be January 1,
1997.
The maximum first year commission on all Single Pay Life policies is hereby
amended to:
Sales Commission 20.5%
Marketing Allowance 6.0%
The Activity Bonus shall apply and remains unchanged. The percentage will be
determined by the Company each year and will not exceed the maximums shown
above.
Further, all renewal commissions payable on or after the effective date of
this Addendum on all policies issued on or before December 31, 1995 shall be
reduced to zero.
In witness whereof, this Addendum has been signed by the parties hereto, dated
at Austin, Texas this 19th day of February , 1998.
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NATIONAL PREARRANGED SERVICES, INC. MEMORIAL SERVICE LIFE
INSURANCE COMPANY
By: /s/ Nekol Province By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
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Title: Vice President Title: President & CEO
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